The Bitcoin price recently showed some good strength and momentum to cross above the $38,300 level for the first time in over a year. This positive move came on Friday, 25th of November, ending a week marked by the departure of Changpeng “CZ” Zhao from Binance, the world’s largest cryptocurrency exchange.
According to the latest on-chain revelation, the rally above $38,000 might just be an indicator of what is to come, should the Bitcoin price maintain its current momentum.
Santiment Predicts Push To $40,000, But Here’s What Needs To Happen
Blockchain analytics platform Santiment, in a post on X, provided insight on Bitcoin’s latest push above the $38,000 price. Although the premier cryptocurrency has since experienced a price correction, this latest surge helped the Bitcoin price to its highest point since May 5, 2022.
While the Bitcoin price spurt can be tied to numerous factors, Santiment has pointed to the largest Tether (USDT) addresses as one of the major contributors. According to on-chain data provided by the analytics platform, the top 100 largest Tether addresses have invested $1.67 billion into the market over the past six months, reflecting a 9.7% in buying power.
Tether's large addresses add $1.67 billion in six month | Source: Santiment/X
Tether, the largest US dollar stablecoin in the market, often provides stability for traders and investors in the naturally volatile cryptocurrency market. Going by Santiment’s revelation, the recent infusion of funds by USDT whale addresses suggests a growing confidence amongst the significant class of investors.
Whales or large crypto holders are deemed important in the cryptocurrency landscape, as their collective actions can dictate market sentiment and influence the trajectory of asset prices. In fact, the on-chain intelligence platform highlighted that “if whale USDT buying power continues to rise,” the Bitcoin price could break the $40,000 barrier in the near future.
Nevertheless, the Bitcoin market, as is the general cryptocurrency market, is also driven by a host of other factors, including regulatory developments, macroeconomic trends, and technological advancements. On regulatory developments, several asset managers are still awaiting the green light from the Securities and Exchange Commission (SEC) to offer Bitcoin spot exchange-traded funds (ETFs) in the United States.
Bitcoin Price – Overview
As of this writing, the Bitcoin price stands at $37,834, reflecting a 1.1% jump in the past 24 hours. Although the market leader had to endure a relatively quiet past week, BTC’s value has managed to grow by nearly 4% in the last seven days, according to data from CoinGecko. With a market capitalization of roughly $739 billion, Bitcoin currently ranks as the largest cryptocurrency.
Bitcoin price hovers around $38,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Barron, chart from TradingView
Source: https://bitcoinist.com/bitcoin-price-to-40000-heres-what-needs-to-happen/